November does not seem to be so positive after all. Bailouts and stimulus plans are coming up from time to time but you must not expect the markets can return to the peak level in Oct 2007.
We must allow the markets to purge the toxic elements and regenerate themselves. It's just like Nature. If you emit too much CO2, you must allow Nature to "recycle" such gas and regenerate fresh air. The process must take time and patience and it must be wrong to expect an instant recovery. If you really want a healthy recovery, I mean.
Clearly many major currencies have begun their devaluation transformation and liquidity flooding. Too many objections to such approach are raised but we can't stop it. Politics require ruling elites to do that; not economics.
What is most respectable is China's economic stimulus package. It emphasizes (among others) on developing low-cost housing and infrastructures particularly in rural areas. This is a perfect policy. China is using its money to help to develop a healthy social and economic structure and at the same time to keep growth. Our Central Government in Beijing is a government with golden conscience and love for the people.
On comparison, the evil Bailout Plans adopted by the US government is exactly the opposite. The plan could only bail out the devils in Wall Street, spread the deadly mad bear virus and release more evils into our world. I have not heard anything about how the victims of the housing and credit crises in US have indeed benefited from such evil plan. Clearly the people in US may only include the ruling elites, Wall Street's rich and super-rich devils and their friends. People in the street like you and me are NOT people in USA, I think!
While many Mr. Market are still looking at the stock casinos and can't give up their addiction to the toxic stocks, I begin to see that some Mr. Market have become a little wiser. They begin to realize that the stock casino in Hong Kong is truly a casino that bets on rumors, false information, insider dealings, undisclosed problems, useless reports, unfair policies, etc. They are now surrendering to this ugly reality and recognize that they are and will always be the real LOSERS! But the pity is that it's now too late. They have lost a lot of money for learning this lesson.
How are they going to earn enough to keep up what they have lost is the only issue facing Mr. Market. Do not expect our Central Government in Beijing will help them to speculate in the housing and stock markets. This has never been the policy of our Beijing Government. So Mr. Market must look for somewhere else to find a way out.
November won't be the month to give much hope to Mr. Market. But I would think November should be a time for all of us to review critically what has gone wrong, why and how are we going to avoid these mistakes and build up a healthy global economy. If November can be used to do such exercise, then it may still deliver hope to us. But we seldom have what we want and I won't be disappointed to see nothing like that in Nov.
As to what will happen, no one knows except the devils in Wall Street. Why? They are sucking our blood now and they have the whole world at their fingertips!
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